Using the Bluetooth module on the ArduinoBT

Hi guys,
I just received my arduino bt and trying to get into having it communicate with mobiles.

Looking for code to start with, I was thinking the above one.
What does it exactly do? What's the read it gets? Do I have to add a sensor/device to have a read comingback?

Whats the best way to debug apart from checking LED blinkings? Is there a way to have the arduino talk back the messages to the Arduino software for debugging/checking?

Sorry, about so many questions at once, but I am a bit new to this. :-/